The OECD average tax wedge declined between 2000 and 2014 for both of the selected household types. There were 10 OECD countries with a reduction of more than 5 percentage points between 2000 and 2014 for at least one of the two family types; Australia, Denmark, Hungary, Ireland, Israel, New Zealand and Sweden.

Single average worker

The average OECD tax wedge declined by 0.7 percentage points from 36.7% to 36.0%.

There were declines in 21 OECD countries over the 14 years and increases in 12 (Austria, the Czech Republic, Greece, Iceland, Italy, Japan, Korea, Luxembourg, Mexico, Portugal, Spain and the United States).

The largest decline was for 9 percentage points in Israel.

There was also a decline of over 7 percentage points in Sweden.

There was a reduction in the tax wedge of more than 5 percentage points in 2 other countries (Denmark and Hungary).

One earner married couple with two children on average earnings

The average OECD tax wedge declined by 0.8 percentage points from 27.7% to 26.9%.

There were declines in 21 OECD countries over the 14 years and increases in 13 (Austria, Chile, the Czech Republic, Estonia, Greece, Iceland, Japan, Korea, Luxembourg, Mexico, the Netherlands, Norway and Spain).

The largest decline in the tax wedge was for 9.8 percentage points in New Zealand.

There was also decline of over 9 percentage points in Hungary.

There was a reduction in the tax wedge of more than 5 percentage points in 4 other countries (Australia, Ireland, Israel and Sweden).